Vietnam urged to green its industrial parks to keep foreign investment flowing

The country's industrial real estate sector faces near-term headwinds following Washington’s threat of 46-percent reciprocal tariffs on Vietnamese imports.

The tariffs were originally meant to take effect on April 9 but the Trump administration then delayed its implementation by 90 days for negotiations.

Experts argue that improvements in environmental standards, service quality, and technological infrastructure could not only safeguard investment but also lay the groundwork for more sustainable growth.

Production rush ahead of tariff deadline

Pham Van Viet, vice-chairman of the Ho Chi Minh City Association of Garment, Textile, Embroidery, and Knitting, said manufacturers are accelerating shipments to the U.S. in anticipation of tariff changes.

"Companies inside and outside industrial parks are working overtime to take advantage of the temporary delay," Viet said. 

Many firms are adding extra shifts and expanding their workforces to meet urgent delivery schedules.

An executive from a local industrial park operator said the initial tariff announcement had a chilling effect on investor confidence. 

Some lease negotiations were paused. 

But interest returned quickly once the implementation was postponed, and discussions to lease production and warehouse space have resumed.

"Early signs from trade negotiations suggest the tariffs could be adjusted to more manageable levels," the executive said, adding that Vietnam’s established infrastructure continues to offer a competitive advantage over regional peers.

Push for sustainable, high-tech development

While the tariffs present short-term uncertainty, analysts remain upbeat about Vietnam’s investment outlook, citing strong GDP growth, reliable logistics networks, and government support for industrial development.

Trang Bui, CEO of Cushman & Wakefield Vietnam, said investors are increasingly drawn to sectors like electronics manufacturing, semiconductors, and data centers, even as traditional industries such as textiles remain active.

“Vietnam’s industrial property market is maturing quickly, making it one of the most important players in the region,” Bui said.

Pham Thuy Duong, deputy head of research at Dragon Capital, pointed to Vietnam's growing role in global supply chains, underscored by the presence of companies like Samsung and Apple. 

But she stressed that future growth will depend on attracting higher-tech industries that require more skilled labor.

Hardy Diec, chief operating officer of Vietnam Industrial Park Group, said the country must pivot to a new development model that aligns with global environmental, social, and governance standards.

"We need industrial zones that integrate smart technologies and provide stable environments for long-term operations," Diec said. 

He added that building green infrastructure is essential to attract top-tier investors and move toward higher value-added manufacturing.

FDI, exports continue upward trend

Despite trade tensions, Vietnam drew nearly US$14 billion in registered foreign direct investment in the first four months of 2025, up 40 percent from the same period last year, according to government data.

April exports hit $37 billion, lifting total export turnover for the year to $140 billion, a 13-percent increase from 2024.

Ho Chi Minh City saw its industrial production index climb 6.6 percent in April from the previous month and 10.8 percent year over year. 

The four-month average rose nearly eight percent, marking the highest rate in four years.

These gains, experts say, are a reminder that even amid global uncertainty, strategic improvements in sustainability and innovation could help Vietnam stay firmly on the radar of international investors.